RBI TIGHTNES RULES FOR BANKS LENDING TO REALITY

The Reserve Bank of India has laid down diligence standards for banks in sanctioning loans to real estate sector after inspections found that most frauds were due to document forgeries even after certificate by lawyers and chartered accountants. The central bank has said banks should leave no stone unturned to verify the documents and verify the title, including cross verification with the local administration, to ensure that frauds are eliminated.